Buy a Cheap Home

Buying a property is a big step for anyone to take. A property will be the biggest purchase of your life and for low to medium earners one that can be very hard to initially buy. The hard work often pays off though as you can find yourself with a good return on investment, especially if you buy a Below Market Value Property which often come in the form of repossessed homes.

A repossessed home is becoming more and more common and whilst there are a wide variety of reasons for them to happen, one of the most common reasons is the owner struggling to pay their outgoings on a monthly basis. Once this happens more frequently, a back log occurs and they get into more trouble. Often, the only option for them is declare themselves bankrupt and it is generally at this point their house is repossessed and is put up on a Residential property auction.

Because these houses often require a quick property sale they can be available for far less than if they were valued and put on the open market which makes them a great investment for first time buyers. Of course, its not just first time buyers that like to take advantage of the investment opportunity, it is honed business men and women who see their next money making opportunity.

It is because of this that it is important that you do your research prior to attending the auction and if possible attend other auctions before the one you want to bid in so you can get a feel for how they work. If the process is all a little daunting or you find attending these live auctions problematic then there are a whole host of online property auctions these days that you can safely bid in the comfort of your own home.

New Build HomeBuy – A Helping Hand for First-Time Buyers

Housing Corporation

First-time buyers are having a difficult time at the moment, and, as with most things involving money, the less well-off you are the harder hit you’ll get.

So how can this be helped? Today, we want to bring your attention to one possible option: the New Build HomeBuy government scheme.

By initially purchasing a share (normally 25 – 75%) in a property, rather than the entire thing, you massively reduce the initial amount that has to be paid. The enormous investment when first buying a home is the biggest stumbling block for a lot of people.

The remaining share of the property you then pay rent on, which itself is at a reduced rate.

This isn’t where it ends though. After your initial purchase, you can buy a greater and greater share in your home, a method known as ‘staircasing’. This allows you to work all the way up to having a 100% share in the property, at which point, rather obviously, you completely own it.

If, at any point, you think, “Wow! I really want to sell my house!” then that avenue is still open. At any time up until you own 100% of the house, you can sell your share of the property to somebody of your landlord’s choosing.

It’s easier to sell once you’ve achieved complete ownership though, as you no longer have to consult a landlord. From here, you could sell with the intention of moving, stay in the property without having to pay rent, or sell to a company that buy property and rent back to you, allowing you to cash in on your newly bought house without having to move out.

Of course, when considering your options for buying you need to find the one that’s right for you. If monthly payments of rent are going to be a problem, then this scheme won’t work, just as it won’t work if you can’t get the initial down payment together. In these circumstances, there are still options for you, but it’s going to be hard, especially with the current state of the housing market.